Death of Deflation Trade Takes Hold as U.S. Bonds Breach Ceiling
This article is for subscribers only.
The bond market may be seeing the death knell of a popular bet that inflation will stay low.
The 30-year Treasury bond’s yield rose above a key level that this week, breaking out of what’s know as its 200-day moving average. That may signal traders are done betting the collapse of oil prices will lead to deflation after pushing the longest-maturity debt to record lows in January.